terms of the letter of credit

Thus the bank's obligation is defined by the terms of the letter of credit alone, and the sale contract is irrelevant.

Confirmed acceptance credit means that the bank upon which the credit has been issued, essentially guarantees payment as long as the terms of the letter of credit have been complied with.

Issuers of letters of credit now view themselves, not as purchasers of bills of lading, but as mere examiners of the bills' facial compliance with the terms of the letter of credit.

An acceptance credit is a type of letter of credit that is paid by a time draft authorizing payment on or after a specific date, if the terms of the letter of credit have been complied with.